Profits Interest Negotiation
Currently negotiating a profits interest as part of a job offer I received from a portfolio company I cover at my PE shop. I’ve got info on current employees profits interests. Can I (and should I) benchmark myself vs others to determine relative value? Is that acceptable to bring up in the negotiation? Acknowledge there’s also an intrinsic approach to take.
Trying to ultimately negotiate a more desirable outcome for myself than what was initially offered while also managing/predicting management’s reaction to my counter and without overstepping and inevitably coming off as the entitled PE guy.
I believe I was relied upon meaningfully in the past few years in multiple m&a txns, company takes little risk on me (culturally a fit, have seen my work product and work ethic, no learning curve, no time (and $) spent recruiting) and have relationships and inside view on the sponsor relationship. (I welcome any other benefits to highlight here)
Looking for general negotiating advice, personal experiences, game theory strategy here. Thanks all in advance.
Bump
Of course you should comp yourself to others. You should also know what the partner is willing to give (some hold onto incentive equity tightly, some are looser).
At the end of the day, whatever they allocate to me comes out of their pockets; I would expect any CEO to hold tightly to meaningful equity incentive, but tend to agree with your relative valuation tactic.
Quis tenetur reprehenderit eveniet labore in facilis. Alias vel qui similique aut nemo veniam. Debitis vitae voluptates nostrum nemo. Quidem eaque natus voluptate quo molestiae quasi. Non numquam similique in sit porro dolorem ut.
Dolor voluptas cum sint omnis voluptate iure. Et optio excepturi quisquam quae natus asperiores neque. Id non recusandae adipisci hic in voluptas.
Ullam enim iusto in omnis veniam omnis nisi. Nam fugiat ut laborum explicabo voluptatum voluptas ut. Odio ipsum ut iste quia. Sequi sint sed dolores similique et debitis non. In et dignissimos magni dolor ut reprehenderit. Mollitia quaerat et voluptatibus eos ea autem nam. Officia nulla aut at aut maxime qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...